Microsoft’s Azure powers Israeli surveillance of Palestinian phone calls

Microsoft's Azure powers Israeli surveillance of Palestinian phone calls

a man speaks next to a backdrop that reads ‘Microsoft’

Story Highlight

– Microsoft’s Azure used for Israeli intelligence mass surveillance.
– Unit 8200 collects phone calls from millions of Palestinians.
– Data stored aids military operations and airstrike planning.
– Microsoft claims no knowledge of surveillance data storage.
– Project raises ethical concerns among employees and activists.

Full Story

In late 2021, Satya Nadella, the CEO of Microsoft, hosted a meeting at the company’s headquarters, a reimagined former chicken farm near Seattle, with the head of Israel’s military intelligence agency, Unit 8200. The agenda focused on the transfer of sensitive intelligence operations to Microsoft’s cloud platform. Yossi Sariel, who commanded Unit 8200, secured Nadella’s backing for a project that would allow the agency to access a specially designed section of Microsoft’s Azure cloud services.

This collaboration led to the development of a sophisticated surveillance system, operational since 2022, which collects and retains records of millions of phone calls daily from Palestinians in Gaza and the West Bank. An investigation conducted by the Guardian, in partnership with +972 Magazine and Local Call, unveiled the extensive capabilities of this cloud-based system, which allows for the storing of vast numbers of communications over prolonged periods.

While Microsoft contends that Nadella was not informed about the details of the data usage, leaked documents and interviews with insiders paint a contrasting picture of the actual implementation and purpose of the technology. According to several sources from within Unit 8200, the Azure platform has been integral in facilitating military actions, including airstrikes, by offering a comprehensive archive of civilian communications.

Historically, Israel has had the means to tap into Palestinian telecommunications, but the new system has expanded the scope of surveillance dramatically, enabling intelligence officers to access conversations of everyday civilians more easily. Sources indicate that the agency sought Microsoft’s expertise after recognizing its own servers lacked the capacity necessary for such extensive surveillance.

An internal motto reportedly arose within Unit 8200 to reflect the ambition of the project: “A million calls an hour.” The system was designed following collaborative efforts between Microsoft engineers and Unit 8200 personnel, with advanced security measures tailored to their specifications. Documents suggest that significant amounts of classified information may now reside in Microsoft data centres located in Europe.

Amidst these developments, Microsoft has faced scrutiny from its workforce and investors regarding its collaboration with the Israeli military, particularly in light of the ongoing conflict in Gaza. A notable instance of dissent occurred in May when an employee publicly challenged Nadella during a keynote event. Following revelations about Israel’s technological dependencies for military operations, Microsoft announced it would conduct a review of its engagements.

Microsoft has stated that it sought assurances on how its technology would be implemented, asserting that it would not be used for lethal targeting. However, insiders allege that intelligence derived from Azure has directly influenced operational decisions, including the identification of targets for airstrikes. During the recent conflict in Gaza, the use of the system reportedly surged, contributing to significant civilian casualties amidst military actions.

Unit 8200 originally focused its surveillance efforts on the West Bank, where millions live under Israeli military governance. Sources claim that data stored in Azure provided a compelling intelligence resource, potentially utilized for detentions or worse justifications for lethal actions against individuals.

Microsoft has communicated its lack of awareness regarding the specifics of data handled by Unit 8200, framing its relationship as purely one of enhancing cybersecurity efforts. Yet, the reality of the technological partnership, according to various intelligence Veterans, suggests a more intricate interplay of innovation and oversight.

Sariel, who commanded Unit 8200 from early 2021 until late 2024, played a pivotal role in the cloud initiative. Following a surge in violence in 2015, he advocated for robust methods to monitor Palestinian communications. Observers note that his ambition extended beyond traditional surveillance, embracing mass data collection to preemptively assess threats to security. This involved a granular analysis of text messages and the deployment of AI to appraise the perceived risks associated with civilian communications.

Despite Microsoft’s assertions, documentation indicates a mutual understanding of the sensitive nature of the data involved. Sariel’s subsequent meeting with Nadella reportedly highlighted the intent to escalate data integration into Azure, reflecting a strategic vision for extensive technological cooperation.

Following the catastrophic events of 7 October 2023, criticism mounted against Sariel for prioritizing technological engagement over conventional intelligence methodologies, ultimately resulting in his resignation. As hostilities in Gaza continued, the cloud-based capabilities established under his leadership became instrumental in military operations, raising ongoing concerns about the implications for civilian life in the region. The damaging impact of Israel’s actions on Gaza’s telecom infrastructure has tempered communication volumes, yet the information retained in the cloud remains significant for intelligence operations as the conflict evolves.